Imperative Energy: Clean Tech Start Up Case Study

PRESENTATION CONTENTS

• The Big Picture

• Company Overview

• Case Studies

• Future Projects

• Policy Wish list

THE BIG PICTURE

• The transition from fossil fuels to renewable / clean

energy technologies is a global imperative, driven by

underlying fundamental issues:

– Global energy demand

– Fossil fuel prices

– Security of supply

– Climate Change

OIL PRICES

• So, have oil prices halved or have they doubled???

• Halved in 12 months to August ‘09

OIL PRICES

• Doubled in 5 years to November ‘09

WHAT IS DRIVING THE NEED

• Regulatory imperative

– Renewable Energy is central to aggressive Government targets for reduction in Carbon emissions

• Economic imperative

– Biomass is far cheaper than oil, and more secure in its supply, over the medium term

• Last year, investment in clean energy reached record levels of $148 billion - 60% higher than in 2007. According to New Energy Finance,investment between now and 2030 is expected to reach $450 billion a year.

PRESENTATION CONTENTS

• The Big Picture

• Company Overview

• Case Studies

• Future Projects

• Policy Wish list

BRIEF HISTORY

• Founded in September 2007

• Offices in Maynooth, Ireland and London, UK (new Manchester office

opening next month)

• Largest installations: 1.6 MW Downpatrick; 1.2 MW Kent.

• Currently working on >10MW steam plants and biomass CHP plants in

UK and Ireland

• Strategically aligned with leading sector partners to extend capabilities

• August 2009 – complete €30m equity finance package

• Finalising €70m debt finance package with specialist European bank

EQUITY PARTNER

€1.8 billion of committed funds

€150 million committed fund to

invest in renewable energy

assets and companies

€30 million committed fund to

invest in Biomass projects

FUEL SUPPLY PARTNER

• Green Belt Ltd

• Deep Expertise in forest management and SCM

• Developing customer focused delivery logistics

• Secured access to sufficient quantity of biomass to supply

135MW of capacity

ENGINEERING PARTNER

Exclusive partnership with BIOS of Austria

Leading international engineering consultancy

Specialise in design and implementation of

biomass energy systems

Completed over 20 biomass CHP plants using

range of technologies in varied applications

Our partner in assessment, design and project

management for biomass CHP

PRODUCT/SERVICE OFFERING

1. Turnkey solution provider for biomass heating & biomass CHP

– Design, implementation, project management and maintenance

– Proven technology and flexible customised design

2. Energy Supply Company (ESCo)

– ESCO means we finance, build and operate entire system

– Customer only pays for metered heat on a long term contract

– Eliminates the need for capital cost and produces lower energy costs and carbon emissions

– Imperative Energy assumes all the operational risk

– Only interested in biomass led ESCo, preferably to single client

PRODUCT RANGE

• Over 70 years experience in manufacturing biomass energy systems

• Market leader in Switzerland and growing presence in Europe, Asia and America

• Employ over 200 people and complete all manufacturing in house using latest technology and innovation

• ISO 9001 certified, CE marked and PED compliant

• Biomass boilers up to 25MW rated output

• Can burn variety of different types of biomass

• Can produce hot water, steam or thermal oil

• Customisable fuel handling and control systems for maximum performance

• Proven CHP reference plants for ORC & steam turbine

Schmid AG

• Unlike most UK based agents for European product

manufacturers:

• Our company and processes are deeply imbedded into

Schmid AG

• We bring full weight of Schmid AGs design team to each

project

• Financial security of credit worthy supplier

• Every system designed for specific project

• Strategic partnership – not agency

PRESENTATION CONTENTS

• The Big Picture

• Company Overview

• Case Studies

• Future Projects

• Policy Wish list

Highschool Wil, UTSR-240

Youghal Leisure Centre

•360kW boiler

•Fully containerised

•800t woodchip per annum

Highschool Wil, UTSR-240

DOWNSHIRE HOSPITAL

Boiler UTSK 1600kW

Fuel woodpellets

Moisture 10%

Grate underfeed stoker

Medium hot water

INTERLAKKEN DISTRICT HEATING

Highschool Wil, UTSR-240

CHILEAN SAWMILL

Boilers 2 x UTSR 20MW

Fuel wood residues

Moisture 62%

Grate moving grate

Fuel transport chain conveyors

Medium hot water

PRESENTATION CONTENTS

• The Big Picture

• Company Overview

• Case Studies

• Future Projects

• Policy Wish list

IEL PIPELINE

• Primary activity in the range 150kW – 6MW

– Supply & Install or ESCO

– Increasing proportion will be CHP

– Commercial and Industrial only

– Currently over 50MWth in the pipeline

• Next Installation: Dáil Eireann

• Number of larger project (IEL as project developer, EPC

contract by others)

– 10MWe CHP, UK (hosted by large thermal energy offtaker);

– 20MWe CHP, Ireland (large thermal energy demand)

• Smaller number of green field, self developed projects

– E.g. BioSpark

Green Field Projects

• The BioSpark development is to be located at a 22-acre site close to the town of Claremorris incorporating:

– 20,000 tonne per annum bio-processing facility, utilising next generation technologies and techniques for the conversion of organic material such as straw and wood biomass into multiple high value bio-based products such as ethanol, lactic acid, lignin, methane and hydrogen

– state-of-the-art laboratory facilities for bio-processing research and innovation

– 60,000 tonne per annum wood pellet production facility, which will be the largest and most advanced on the island of Ireland

– 20MWth/5MWe CHP plant which will be fired on biomass and connected to the national grid via a sub-station in close proximity to the site

The Benefits

• 120 jobs during construction

• 80 full-time positions post-construction – mostly high skilled, engineering roles engaged in R&D, manufacturing and operations management

• 100 upstream jobs in harvesting, transportation and supply chain management

• a further potential 120 high value jobs within three years of its completion

• €18m yearly spend on locally sourced goods and services

• significant Intellectual Property (IP) relating to process enhancements as well as new product developments, which will be primarily coordinated through the Energy Research Centre at NUI Galway

• significant displacement of imported fossil fuels and fossil fuel derived products

• ready availability of green energy to the Claremorris area to support further heating/cooling for further inward investment

CONTENTS

• Company Overview

• Schmid Biomass Boilers

• Case Study Overviews

• Combined Heat & Power

• Future Projects

• Policy Wish list

PRESENTATION CONTENTS

• The Big Picture

• Company Overview

• Case Studies

• Future Projects

• Policy Wish list

IRELAND’S OPPORTUNITY

• Biomass yields in Ireland higher than elsewhere in Europe

• Agricultural heritage

• Low level of forest cover

• Bioenergy is more employment intensive than any other form of renewable energy

How to maximise value in terms of jobs?

STIMULATING ECONOMIC ACTIVITY

• Immediate ZERO COST policy initiatives

- direct all public bodies to procure Renewable Heat

- switch future gas network distribution to water (District Heating)

• MARKET ACCESS, NOT TAX PAYER CAPITAL GRANTS

• Benefits:

– Reduce energy imports & carbon emissions

– Generate market pull for biomass (forestry and energy crops)

– Stimulate rural employment

– Strengthen Irish bioenergy companies for export markets

Contact Us:

IRELAND UKUnit 4H Dragons WharfMaynooth Business Campus SandbachMaynooth CheshireCo. Kildare CW11 3PA

T: +353-1-651 0344 T: +44-845-205 5575

www.imperativeenergy.com